This chart looks at the Dow over the past 115 years and no doubt the trend has been up since the 2009 lows and remains up!
If one takes the 2007 monthly high and the 2009 monthly low and apply Fibonacci extension levels to those key highs and lows the Dow is facing the Fibonacci 161% resistance level at this time at (1) above.
Not only is the Dow facing this extension level, it is attempting to break above two resistance lines based upon some key dates as well. The 1982 low, 1987 highs and 2002-2003 lows all create lines that could be resistance, at the Fib 161% level.
Good for the bulls…The Dow breaks Fib and resistance at the same time. This would be very good news for the current trend, should it take place.
Concern for the bulls… The Dow turns weak here and breaks support drawn off the 2009 lows.
Humbly, I do not feel this is your typical Fibonacci test of resistance!!!
I am sharing with Premium and Global Dashboard members today that two of the worlds most important stock markets are testing the same 161% extension level at the same time! This is totally rare and could become extremely important for the current trend!